Applied Corporate Strategy Assessment

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Question 1 External Analysis..........................................................................................................1
PESTEL Analysis........................................................................................................................1
Five force model..........................................................................................................................3
Question 2 Internal Analysis...........................................................................................................4
Resources.....................................................................................................................................4
Value chain..................................................................................................................................6
VRIO............................................................................................................................................8
Question 3 Strategic Evaluation......................................................................................................8
TWOS Matrix..............................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Corporate strategy requires a well-established long-term goal set by companies, aimed at
generating brand loyalty and encouraging the employees to take effective steps to maximize
customer satisfaction (Jiang, and et.al., 2018). This report based on the Vodafone which is global
telecommunication company based in UK. It expands their reach all over the world. This
assessment covers the several topics such as external or internal analysis or strategic evaluation
for formulating strategic options.
MAIN BODY
Question 1 External Analysis
PESTEL Analysis
An overview of PESTEL is an expression for a method used to define the macro
environmental powers an entity faces. It includes several factors such as Political, Economic,
Environmental, Social and Legal (Kang And et.al, 2018). Organizations that observe and adjust
quickly to changes in the macro-environment are capable of distinguishing themselves from the
market and build a competitive edge. In relation to telecommunication sector, external analysis
will provide several opportunities as well as threats which should be considers by the
organizations at the time of formulating business strategies. These are as follow:
Political: This consideration impacting the telecommunication sector of UK
where government intervenes in the telecommunications industry (PESTEL Analysis, 2020).
Regulations have also imposed limits on mobile phones and the prices readily created by the
telecom sector. Any modern tech has to stick to those laws such as customer data protection law,
Communication Act etc. Goods and services given access by the telecommunications industry
really should fit in with federal regulations on security and privacy. Restriction and government
regulations are the threats for the organizations who want to enter in this sector or set up their
business.
Economic: It is understood that inflation, population development and interest rates have
significant consequences for the telecommunications industry. Especially during worldwide
downturn, competitors need to remain alive in industry (Keneley, 2018). Different firms will
attempt hard to stay member of the investments that they have to make. Worldwide recession
will be the threat for the telecommunication sector because it also affect the economy of UK and
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other countries as well, so UK based organizations need to develop backup plan to stay out of
this and make sure that, there operations not getting affected too much.
Social: The social cultural factors are associated with the lifestyle or behaviour of people.
So telecommunications industry worries about the customer data and security. Many businesses
rely on the telecommunications industry for phone conversations, text messages, e-mailing and
regular phone calls. It is the huge opportunity for the organizations to identify the common
culture of particular country and what is required to satisfy the customers. Management should
build their strategy on the basis of this factor which provides several opportunities or helps in
expending their business into UK market.
Technology: This factor has made boundless progress where new mobile models and
connectivity are being developed on a regular basis and it clarifies that the demand is based on
emerging technology for all businesses. It is the greatest opportunity for the telecommunication
sector organizations to enter in this sector along with the advanced and latest technology which
will be new in the market and provide them huge popularity and demand as well.
Environmental: These would be factors related to environmental which surround the
telephony. In order to have better way to excel in the market, businesses need to know public
sentiment. Climate change and global warming are just a few aspects that many businesses need
to look at it and function properly out. If organizations follow such environment standards and
introduce those products and services which are environmental friendly then it will be the
greatest opportunity for organizations and them able to capture huge market with the help of this
initiative. Climate change and global warming is the environment factor which affect the
telecommunication industry.
Legal: Telecommunications industry has always been affected by legislative issues which
will be the greeted threat (Kolotzek And et.al., 2018). This sector has opened doors to imports
and exports a step that expanded the industry's number of modern technical products.
Employment policies do have an effect on manufacturing, and this has improved labour
competitiveness. This external environmental factor is the threat for the organizations that
operate in this industry due to legal issues and significant taxation policy.
From the overall external analysis, it has been observed that most of the
telecommunication sector work under dynamic and increasingly evolving conditions.
The majority of telecommunications firms work. It is better to keep with both the changing
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environment for any corporation or shareholder to excell in the sector. Any telecommunication
organizations should also be able to initiate its clients at cheaper rates than its competing
companies with extraordinary and quality material. For example: Vodafone company offer low
call rate facility in comparison to their compatriots.
Five force model
Porter's Five Forces plan is a means of evaluation of a company's competition. It extracts
from the economies of business location to extract five factors that decide a sector's core
competitiveness and hence the competitiveness in terms of its productivity (Nason and Wiklund,
2018). Analysis of five forces begins to look at five areas primarily at the barriers of substitution,
buyer's power, supplier’s power, substitute threat, and rivalry among existing competitors. In
context of telecommunication sector of UK, industry analysis is very essential to identify the
several threats which can organizations face. In addition, with the help of it businesses are able to
formulate strategies to minimise the impact or able to achieve their goals & objectives. Further
analysis discussed below in context of telecommunication sector:
Threats of new entrance: Due of entry barriers, the threat from new market arrivals is
Moderate. Industries who plan to enter the market will incur tremendous license costs combined
with the industry's bandwidth shortage and regulatory issues. Furthermore, the expense of
building communications infrastructure is high, and the constantly evolving technology renders it
impossible for new competitors to cope. However, telecommunication organizations can cope
up with this by keeping its service providers to unmatched heights at high-level productivity. For
example: Companies has to pay huge cost for its licence and all are varying according to the
nation.
Threats of substitute: The telecommunications industry is faced a very high degree of
forces, which is significant as a challenge to goods and services. In the telecommunications
market, there is basically a very high degree of competition from threats of substitutes. Both the
broadband and (Code Division Multiple Access) CDMA services are rapidly declining even
when broadband services are rapidly to become common. Streaming video, Voice over Internet
Protocol (VOIPs) such as Google Talk, Skype and Yahoo Messenger, email and social
networking have arisen as alternatives for internet networks. However, because of efficient
economy of scale, Vodafone doesn't have to carry down the costs attributable to customer
replacement.
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